Smart retailers have left no product category unexplored during this downturn. In many ways, area rugs may be the easiest category to get into — provided a retailer does his homework, knows his market and picks the right partners for the venture.

Now that the economic recovery is getting underway, it's an even better time to add area rugs to the product assortment — if it's not already part of the retail mix. Consider these advantages of area rugs:

Price points run a full gamut: It's possible to have really inexpensive rugs all the way up to museum-quality pieces that run in the millions. But for most retailers, having the lower end can be an easy way to generate impulse buys.

Affinity to hard surface: Research done some years ago suggested that within 72 hours of purchasing a hardwood floor, the consumer was in the market for an area rug. If anything, that time has shortened.

Cash and carry: Obviously, consumers may wish to finance more expensive area rugs or include them in a packaged floor covering purchase, but if not, rugs represent one of the easier cash-and-carry possibilities in the flooring business.

No installation: That may be the biggest benefit to the rug business. The customer takes home the rug and puts it on the floor. There's no scheduling, no installation and none of the associated pain for the consumer or the retailer.

"Everyone in the industry recognizes the reduced store traffic and sales opportunities over the last two years,bCrLf said Mike Riley, president, Oriental Weavers USA. Retailers need to remember that every time they sell a hard surface job, their customer is going to buy an area rug somewhere. "Why send that customer down the street to their direct competition, a furniture store or catalog?bCrLf Riley asked.

"It has never been easier to get into the rug business or to upgrade your area rug selections,bCrLf explained Joyce Lowe, director of sales for Nourison. "One of the most important things is to select your vendor partners with care. Select vendors that have viable program rug collections with adequate back-up inventory. If you are aligned with a strong supplier, you will limit the amount of money that you must invest in samples and stock and increase your gross profit by achieving greater turns on your investment,bCrLf she continued.

Lowe said the second most important consideration is assortment. "The most economical way is to select program area rug collections. It is important to remember that 20 percent of the rugs you select will create 80 percent of your sales,bCrLf a proven fact, Lowe added. "We all select rugs that do not sell as well as we thought. The most important thing is to close them out as soon as possible, free up your open to buy and bring in new merchandise to freshen up your assortment and generate more sales,bCrLf she added.

Some retailers argue that they don't have the space for a stack of rugs or the ceiling height necessary for a hanging rug display. That doesn't exclude them from being able to get into the area rug business.

The easiest way to add on rug sales is a great display vehicle, said Kim Barta, brand manager for Shaw Living. Shaw's new area rug display and kiosk, launched in January, is a great vehicle for dealers who have no space in the store to have rugs.

The display fits within 25 square feet and showcases more than 5,500 SKUs. Requiring only 25 square feet, the display attracts consumers from across the store with a dramatic design, Shaw Living Area Rugs identification, and a video loop featuring Kathy Ireland. In addition to the 68 sample boards with 12 x 19 substrate samples, and room sets, shoppers are also invited to "Find My RugbCrLf on the interactive touch screen.

"The interactive kiosk allows the customer to put in her design style — traditional, transitional, contemporary, lodge, youth, outdoor, etc add in color and the kiosk will kick back the top-selling rugs that fit that consumer's specific design need. It's personal shopping at its best,bCrLf Barta said.

Barta also suggested that when retailers sell hard surface flooring, they should offer a promotion for area rugs, perhaps a coupon for 20 percent off. "Another good idea is to take a few rug options to the home for viewing after the hard surface flooring has been installed. It is difficult to turn down a rug that completes the room — especially when it is in place on the floor.bCrLf

"The Shaw Living Interactive Display is an answer for many flooring retailers who would like to be in the rug business but are limited on space,bCrLf noted Jim Curtin, Shaw Living vice president of sales. "Retailers can offer their customers choices from more than 5,500 rugs through a very small footprint. Rugs are a great add-on sale — especially to hard surfaces, require no installation, and have very limited claims issues. It's an easy and economical way to increase business,bCrLf Curtin pointed out.

"Many retail salespeople aren't as knowledgeable or comfortable selling area rugs as they are with traditional broadloom and hard surface products,bCrLf Oriental Weavers' Riley said. "It's important to make sure there is a rug champion in the store who can assist customers and other salespeople alike.

Finally, while a variety of price points, styles, constructions and colors are important in rugs, Riley said, "retailers will not sell what they do not show. A representative sample for each major collection should be hanging so that the customer can see the actual colors, textures and construction of the rug first hand. Then, it is much easier to sell special-order products.bCrLf

Riley added, "It is important that the retail sales associate advise the customer of the benefits of a rug and incentivize the customer to make her future area rug purchase in their store. Many times, rug discount coupons at the time of a hard surface purchase or a phone conversation/mailing after the installation will lead to increased area rug sales,bCrLf he said.